I paid $80 for my 256MB Rio Cali (holds about 65 tunes) - but I've seen it for around $50 on Overstock.com.
*my* problem with the iPod is that it is not compatible with the two online music services I use - Napster and Yahoo, which I much prefer to iTunes because the prices are better, and both give you the ability to download and listen to songs without having to purchase them - DH is a musician and when he gets called for gigs, he is usually able to listen to the songs on either Napster or Yahoo and become familiar with them without having to pay a buck for a song he might never want to listen to again

we have some pretty decent speakers on our home PC and are looking into getting a digital media receiver such as the Roku SoundBridge so he can listen to Napster in his studio (which makes our place sound a LOT bigger than it is - the 'studio' being part of the family room of our 1 BR place...) rather than bringing his bass and amp into the breakfast area where our home office is located.
My next MP3 player is going to be a 'subscription enabled' one - then I'll upgrade my Napster to "Napster2Go" and just load as many tunes as I want in my player without having to pay for each one individually (Yahoo's subscription service comes with this, but they don't have nearly as many songs as Napster does...). The prices of the subscription players are really coming down - iRiver has one for about 100 bucks now.